the travel & tourism competitiveness report 2011/2013

The Travel & Tourism Competitiveness Report 2011Beyond the Downturn

Jennifer Blanke, World Economic Forum Thea Chiesa, World Economic Forum

World Economic Forum Geneva, Switzerland 2011

The Travel & Tourism Competitiveness Report 2011Beyond the Downturn

Jennifer Blanke, World Economic Forum Thea Chiesa, World Economic ForumEditors

The full version of the Report with Country Profiles and Data Tables is available at www.weforum.org/ttcr

The Travel & Tourism Competitiveness Report 2011 2011 World Economic Forum

The Travel & Tourism Competitiveness Report 2011 is published by the World Economic Forum within the framework of the Centre for Global Competitiveness and Performance and the Industry Partnership Programme for Aviation, Travel & Tourism. Professor Klaus Schwab Executive Chairman Robert Greenhill Chief Business Officer

World Economic Forum Geneva Copyright 2011 by the World Economic Forum All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic Forum. ISBN-13: 978-92-95044-96-8

EDITORS

Jennifer Blanke, Director, Lead Economist, Head of the Centre for Global Competitiveness and Performance Thea Chiesa, Associate Director, Head of Aviation, Travel & Tourism

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Printed and bound in Switzerland by SRO-Kundig.

CENTRE FOR GLOBAL COMPETITIVENESS AND PERFORMANCE

Ciara Browne, Associate Director Roberto Crotti, Junior Quantitative Economist Margareta Drzeniek Hanouz, Director, Senior Economist Thierry Geiger, Associate Director, Economist Satu Kauhanen, Coordinator Irene Mia, Director, Senior Economist Pearl Samandari, Community Manager We thank Hope Steele for her superb editing work and Neil Weinberg for his excellent graphic design and layout. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis.


Contents

Partner Institutes

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1.7 Green Growth, Travelism, and the Pursuit of Happinessby Geoffrey Lipman, Beyond Tourism, and Shaun Vorster, Ministry of Tourism, South Africa

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Prefaceby Robert Greenhill, World Economic Forum

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Executive Summaryby Jennifer Blanke and Thea Chiesa, World Economic Forum

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1.8 A New Big Plan for Nature: Opportunities for Travel & Tourismby Julia Marton-Lefvre and Maria Ana Borges, International Union for Conservation of Nature (IUCN)

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1.9 Assessing the Openness of Borders

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Part 1: Selected Issues of T&T Competitiveness1.1 The Travel & Tourism Competitiveness Index 2011: Assessing Industry Drivers in the Wake of the Crisisby Jennifer Blanke and Thea Chiesa, World Economic Forum

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by Thea Chiesa, Sean Doherty, and Margareta Drzeniek Hanouz, World Economic Forum

1.2 Crisis Aftermath: Pathways to a More Resilient Travel & Tourism Sectorby Jrgen Ringbeck and Timm Pietsch, Booz & Company

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Part 2: Country/Economy Profiles and Data Presentation2.1 Country/Economy Profiles

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1.3 Tourism Development in Advanced and Emerging Economies: What Does the Travel & Tourism Competitiveness Index Tell Us?by John Kester and Valeria Croce, World Tourism Organization (UNWTO)

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How to Read the Country/Economy Profiles ..............................105 by Roberto Crotti List of Countries/Economies .......................................................107 Country/Economy Profiles ...........................................................108

2.2 Data Tables

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1.4 Premium Air Travel: An Important Market Segmentby Selim Ach and Brian Pearce, International Air Transport Association (IATA)

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How to Read the Data Tables......................................................389 Index of Data Tables ....................................................................391 Data Tables ..................................................................................393

Technical Notes and Sources 61

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1.5 Hospitality: Emerging from the Crisisby Alex Kyriakidis, Simon Oaten, and Jessica Jahns, Deloitte, Tourism, Hospitality & Leisure

About the Authors

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Acknowledgments 1.6 Investment: A Key Indicator of Competitiveness in Travel & Tourismby Nancy Cockerell, World Travel & Tourism Council, and David Goodger, Oxford Economics

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Partner Institutes

The World Economic Forums Centre for Global Competitiveness and Performance is pleased to acknowledge and thank the following organizations as its valued Partner Institutes, without which the realization of The Travel & Tourism Competitiveness Report 2011 would not have been feasible:Albania Institute for Contemporary Studies (ISB) Artan Hoxha, President Elira Jorgoni, Senior Expert Endrit Kapaj, Junior Expert Algeria Centre de Recherche en Economie Applique pour le Dveloppement (CREAD) Youcef Benabdallah, Assistant Professor Yassine Ferfera, Director Angola MITC Investimentos Estefania Jover, Senior Adviser PROPETROLServios Petroliferos Arnaldo Lago de Carvalho, Managing Partner South Africa-Angola Chamber of Commerce (SA-ACC) Roger Ballard-Tremeer, Hon Chief Executive Argentina IAEUniversidad Austral Mara Elina Gigaglia, Project Manager Eduardo Luis Fracchia, Professor Armenia Economy and Values Research Center Manuk Hergnyan, Chairman Sevak Hovhannisyan, Board Member and Senior Associate Gohar Malumyan, Research Associate Australia Australian Industry Group Colleen Dowling, Senior Research Coordinator Nick James, Economist Heather Ridout, Chief Executive Austria Austrian Institute of Economic Research (WIFO) Karl Aiginger, Director Gerhard Schwarz, Coordinator, Survey Department Azerbaijan Azerbaijan Marketing Society Fuad Aliyev, Project Manager Zaur Veliyev, Consultant Bahrain Bahrain Competitiveness Council, Bahrain Economic Development Board Nada Azmi, Manager, Economic Planning and Development Jawad Habib, Senior Partner, BDO Jawad Habib Rima Al Kilani, Director, International Marketing

Bangladesh Centre for Policy Dialogue (CPD) Khondaker Golam Moazzem, Senior Research Fellow Kazi Mahmudur Rahman, Senior Research Associate Mustafizur Rahman, Executive Director Barbados Arthur Lewis Institute for Social and Economic Studies, University of West Indies (UWI) Andrew Downes, Director Belgium Vlerick Leuven Gent Management School Priscilla Boairdi, Associate, Competence Centre Entrepreneurship, Governance and Strategy Wim Moesen, Professor Leo Sleuwaegen, Professor, Competence Centre Entrepreneurship, Governance and Strategy Benin Micro Impacts of Macroeconomic Adjustment Policies (MIMAP) Benin Epiphane Adjovi, Business Coordinator Maria-Odile Attanasso, Deputy Coordinator Fructueux Deguenonvo, Researcher Bosnia and Herzegovina MIT Center, School of Economics and Business in Sarajevo, University of Sarajevo Zlatko Lagumdzija, Professor Zeljko Sain, Executive Director Jasmina Selimovic, Assistant Director Botswana Botswana National Productivity Centre Letsogile Batsetswe, Research Consultant and Statistician Parmod Chandna, Acting Executive Director Phumzile Thobokwe, Manager, Information and Research Services Department Brazil Fundao Dom Cabral Marina Arajo, Economist and Researcher, The Competitiveness and Innovation Center Carlos Arruda, Executive Director, International Board and Professor and Coordinator, The Competitiveness and Innovation Center Arthur Kux, Economist and Research Assistant, The Competitiveness and Innovation Center Movimento Brasil Competitivo (MBC) Erik Camarano, Director President Ceclia Macedo, Economist and Senior Projects Coordinator Nikelma Moura, Communications Assistant Brunei Darussalam Ministry of Industry and Primary Resources Pehin Dato Yahya Bakar, Minister Dayang Hajah Suriyah Haji Umar, Permanent Secretary I Dato Dr Amin Abdullah, Permanent Secretary II Bulgaria Center for Economic Development Anelia Damianova, Senior Expert


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Partner Institutes

Burkina Faso lnstitut Suprieure des Sciences de la Population (ISSP), University of Ouagadougou Samuel Kabore, Economist and Head of Development Strategy and Population Research Burundi University Research Centre for Economic and Social Development (CURDES), National University of Burundi Richard Ndereyahaga, Head of CURDES Gilbert Niyongabo, Dean, Faculty of Economics & Management Cambodia Economic Institute of Cambodia Sok Hach, President Poch Kongchheng, Researcher Cameroon Comit de Comptitivit (Competitiveness Committee) Lucien Sanzouango, Permanent Secretary Canada Institute for Competitiveness and Prosperity Tamer Azer, Researcher Roger Martin, Chairman and Dean of the Rotman School of Management, University of Toronto James Milway, Executive Director Cape Verde INOVE RESEARCHInvestigao e Desenvolvimento, Lda Rosa Brito, Senior Researcher Jlio Delgado, Partner and Senior Researcher Frantz Tavares, Partner and Chief Executive Officer Chad Groupe de Recherches Alternatives et de Monitoring du Projet Ptrole-Tchad-Cameroun (GRAMP-TC) Antoine Doudjidingao, Researcher Gilbert Maoundonodji, Director Celine Nnodji Mbaipeur, Programme Officer Chile Universidad Adolfo Ibez Fernando Larrain Aninat, Director of the Master in Management and Public Policy, School of Government Camila Chadwick, Project Coordinator Leonidas Montes, Dean, School of Government China Institute of Economic System and Management National Development and Reform Commission Zhou Haichun, Deputy Director and Professor Chen Wei, Research Fellow Dong Ying, Professor China Center for Economic Statistics Research, Tianjin University of Finance and Economics Lu Dong, Professor Jian Wang, Associate Professor Hongye Xiao, Professor Bojuan Zhao, Professor Huazhang Zheng, Associate Professor Colombia National Planning Department Alvaro Edgar Balcazar, Entrepreneurial Development Director Carolina Rentera Rodrguez, General Director Mauricio Torres Velsquez, Advisor Colombian Council of Competitiveness Hernando Jos Gomez, President Cte dIvoire Chambre de Commerce et dIndustrie de Cte dIvoire Jean-Louis Billon, President Jean-Louis Giacometti, Technical Advisor to the President Mamadou Sarr, Director General

Croatia National Competitiveness Council Martina Hatlak, Research Assistant Kresimir Jurlin, Research Fellow Mira Lenardic, General Secretary Cyprus Cyprus College Research Center Bambos Papageorgiou, Head of Socioeconomic and Academic Research The Cyprus Development Bank Maria Markidou-Georgiadou, Manager, International Banking Services Unit and Business Development Czech Republic CMC Graduate School of Business Tomas Janca, Executive Director Denmark Department of Business Studies, Aalborg University Birgitte Gregersen, Associate Professor Gert Villumsen, Associate Professor Ecuador ESPAE Graduate School of Management, Escuela Superior Politcnica del Litoral (ESPOL) Elizabeth Arteaga, Project Assistant Virginia Lasio, Acting Director Sara Wong, Professor Egypt The Egyptian Center for Economic Studies Omneia Helmy, Deputy Director of Research and Lead Economist Magda Kandil, Executive Director and Director of Research Malak Reda, Senior Economist Estonia Estonian Institute of Economic Research Evelin Ahermaa, Head of Economic Research Sector Marje Josing, Director Estonian Development Fund Kitty Kubo, Head of Foresight Ott Prna, Chief Executive Officer Ethiopia African Institute of Management, Development and Governance Tegegne Teka, General Manager Finland ETLAThe Research Institute of the Finnish Economy Petri Rouvinen, Research Director Pasi Sorjonen, Head of the Forecasting Group Pekka Yl-Anttila, Managing Director France HEC School of Management, Paris Bertrand Moingeon, Professor and Deputy Dean Bernard Ramanantsoa, Professor and Dean Gambia, The Gambia Economic and Social Development Research Institute (GESDRI) Makaireh A. Njie, Director Georgia Business Initiative for Reforms in Georgia Tamara Janashia, Executive Director Giga Makharadze, Founding Member of the Board of Directors Mamuka Tsereteli, Founding Member of the Board of Directors Germany WHUOtto Beisheim School of Management, Vallendar Ralf Fendel, Professor of Monetary Economics Michael Frenkel, Professor, Chair of Macroeconomics and International Economics

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Ghana Association of Ghana Industries (AGI) Patricia Djorbuah, Projects Officer Cletus Kosiba, Executive Director Nana Owusu-Afari, President Greece SEV Hellenic Federation of Enterprises Michael Mitsopoulos, Coordinator, Research and Analysis Thanasis Printsipas, Economist, Research and Analysis Guatemala FUNDESA Edgar A. Heinemann, President of the Board of Directors Pablo Schneider, Economic Director Juan Carlos Zapata, General Manager Guyana Institute of Development Studies, University of Guyana Karen Pratt, Research Associate Clive Thomas, Director Hong Kong SAR Hong Kong General Chamber of Commerce David ORear, Chief Economist Federation of Hong Kong Industries Alexandra Poon, Director The Chinese General Chamber of Commerce Hungary KOPINT-TRKI Economic Research Ltd. gnes Nagy, Project Manager va Palcz, Chief Executive Officer Iceland Innovation Center Iceland Karl Fridriksson, Managing Director of Human Resources and Marketing Rosa Gisladottir, Marketing Manager Thorsteinn I. Sigfusson, Director India Confederation of Indian Industry (CII) Chandrajit Banerjee, Director General Tarun Das, Chief Mentor Virendra Gupta, Head, International and Trade Fairs Indonesia Center for Industry, SME & Business Competition Studies, University of Trisakti Tulus Tambunan, Professor and Director Iran, Islamic Republic of The Centre for Economic Studies and Surveys (CESS), Iran Chamber of Commerce, Industries and Mines Hammed Roohani, Director Ireland Competitiveness Survey Group, Department of Economics, University College Cork Eleanor Doyle, Professor, Department of Economics Niall OSullivan Bernadette Power National Competitiveness Council Adrian Devitt, Manager Caoimhe Gavin, Policy Advisor Israel Manufacturers Association of Israel (MAI) Shraga Brosh, President Dan Catarivas, Director Yehuda Segev, Managing Director

Italy SDA Bocconi School of Management Secchi Carlo, Full Professor of Economic Policy, Bocconi University Paola Dubini, Associate Professor, Bocconi University Francesco A. Saviozzi, SDA Assistant Professor, Strategic and Entrepreneurial Management Department Jamaica Mona School of Business (MSB), The University of the West Indies Patricia Douce, Project Administrator Evan Duggan, Executive Director and Professor William Lawrence, Director, Professional Services Unit Japan Hitotsubashi University, Graduate School of International Corporate Strategy (ICS) in cooperation with Keizai Doyukai Keizai (Japan Association of Corporate Executives) Yoko Ishikura, Professor Kiyohiko Ito, Managing Director, Keizai Doyukai Jordan Ministry of Planning & International Cooperation Jordan National Competitiveness Team Hiba Abu Taleb, Primary Researcher Maher Al Mahrouq, Team Leader and Director of Policies and Studies Department Kawther Al-Zoubi, Primary Researcher Kazakhstan JSC National Analytical Centre of the Government and the National Bank of the Republic of Kazakhstan Ayana Manasova, Chairperson Aibek Baisakalov, Project Manager Kenya Institute for Development Studies, University of Nairobi Mohamud Jama, Director and Associate Professor Paul Kamau, Research Fellow Dorothy McCormick, Associate Professor Korea, Republic of College of Business School, Korea Advanced Institute of Science and Technology KAIST Ingoo Han, Senior Associate Dean and Professor Ravi Kumar, Dean and Professor Youjin Sung, Manager, Exchange Programme Kuwait Kuwait National Competitiveness Committee Adel Al-Husainan, Committee Member Fahed Al-Rashed, Committee Chairman Sayer Al-Sayer, Committee Member Kyrgyz Republic Economic Policy Institute Bishkek Consensus Lola Abduhametova, Program Coordinator Marat Tazabekov, Chairman Latvia Institute of Economics, Latvian Academy of Sciences Helma Jirgena, Director Irina Curkina, Researcher Lebanon Bader Young Entrepreneurs Program Antoine Abou-Samra, Managing Director Hiba Zunji, Assistant Lesotho Mohloli Chamber of Business Libya National Economic Development Board Entisar Elbahi, Director, Relations and Supported Services Lithuania Statistics Lithuania Ona Grigiene, Head, Economical Survey Division Algirdas emeta, Director General


Partner Institutes

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Partner Institutes

Luxembourg Chamber of Commerce of the Grand Duchy of Luxembourg Franois-Xavier Borsi, Attach, Economic Department Carlo Thelen, Chief Economist, Member of the Managing Board Marc Wagener, Attach, Economic Department Macedonia, FYR National Entrepreneurship and Competitiveness Council (NECC) Dejan Janevski, Project Coordinator Zoran Stavreski, President of the Managing Board Saso Trajkoski, Executive Director Madagascar Centre of Economic Studies, University of Antananarivo Ravelomanana Mamy Raoul, Director Razato Rarijaona Simon, Executive Secretary Malawi Malawi Confederation of Chambers of Commerce and Industry Chancellor L. Kaferapanjira, Chief Executive Officer Malaysia Institute of Strategic and International Studies (ISIS) Mahani Zainal Abidin, Chief Executive Steven C.M. Wong, Senior Director, Economics Malaysia Productivity Corporation (MPC) Mohd Razali Hussain, Director General Lee Saw Hoon, Senior Director Mali Groupe de Recherche en Economie Applique et Thorique (GREAT) Massa Coulibaly, Coordinator Malta Competitive MaltaFoundation for National Competitiveness Margrith Lutschg-Emmenegger, Vice President Adrian Said, Chief Coordinator Caroline Sciortino, Research Coordinator Mauritania Centre dInformation Mauritanien pour le Dveloppement Economique et Technique (CIMDET/CCIAM) Khira Mint Cheikhnani, Director L Abdoul, Consultant and Analyst Habib Sy, Analyst Mauritius Joint Economic Council of Mauritius Raj Makoond, Director Board of Investment Kevin Bessondyal, Assistant Director, Planning and Policy Dev Chamroo, Director, Planning and Policy Veekram Gowd, Senior Investment Advisor, Planning and Policy Raju Jaddoo, Managing Director Mexico Center for Intellectual Capital and Competitiveness Erika Ruiz Manzur, Executive Director Ren Villarreal Arrambide, President and Chief Executive Officer Jess Zurita Gonzlez, General Director Instituto Mexicano para la Competitividad (IMCO) Gabriela Alarcn Esteva, Economist Luis Csar Castaeda Valds, Researcher Manuel J. Molano Ruz, Deputy General Director Roberto Newell Garca, General Director Ministry of the Economy Paulo Esteban Alcaraz, Research Director, ProMxico Trade & Investment Felipe Duarte Olvera, Undersecretary for Competitiveness and Standardization Javier Prieto, Technical Secretary for Competitiveness Jose Antonio Torre, Head of the Business Intelligence Unit, ProMxico Trade & Investment

Moldova Academy of Economic Studies of Moldova (AESM) Grigore Belostecinic, Rector Centre for Economic Research (CER) Corneliu Gutu, Director Mongolia Open Society Forum (OSF) Munkhsoyol Baatarjav, Manager of Economic Policy Erdenejargal Perenlei, Executive Director Montenegro Institute for Strategic Studies and Prognoses (ISSP) Maja Drakic, Project Manager Petar Ivanovic, Chief Executive Officer Veselin Vukotic, President Morocco Universit Hassan II, LASAARE Fouzi Mourji, Professor of Economics Mozambique EconPolicy Research Group, Lda. Peter Coughlin, Director Donaldo Miguel Soares, Researcher Ema Marta Soares, Assistant Namibia Namibian Economic Policy Research Unit (NEPRU) Jacob Nyambe, Senior Researcher Fanuel Tjingaete, Director Nepal Centre for Economic Development and Administration (CEDA) Ramesh Chandra Chitrakar, Professor and Country Coordinator Bharat Pokharel, Project Director and Executive Director Mahendra Raj Joshi, Member Netherlands Erasmus Strategic Renewal Center, Erasmus University Rotterdam Frans A. J. Van den Bosch, Professor Henk W. Volberda, Professor New Zealand Business New Zealand Phil OReilly, Chief Executive The New Zealand Institute Lisa Bailey, Executive Assistant Rick Boven, Director Nigeria Nigerian Economic Summit Group (NESG) Frank Nweke Jr., Director General Sam Ohuabunwa, Chairman Chris Okpoko, Research Director, Research Norway BI Norwegian School of Management Eskil Goldeng, Researcher Torger Reve, Professor Oman The International Research Foundation Salem Ben Nasser Al-Ismaily, Chairman Arabian Research Bureau Gus Freeman, Managing Director Mahir Al-Maskari, General Manager Pakistan Competitiveness Support Fund Arthur Bayhan, Chief Executive Officer Imran Naeem Ahmad, Communication Specialist Maryam Jawaid, Communication Specialist

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Paraguay Centro de Anlisis y Difusin de Economia Paraguaya (CADEP) Dionisio Borda, Research Member Fernando Masi, Director Mara Beln Servn, Research Member Peru Centro de Desarrollo Industrial (CDI), Sociedad Nacional de Industrias Nstor Asto, Project Director Luis Tenorio, Executive Director Philippines Makati Business Club (MBC) in association with Management Association of the Philippines (MAP) Alberto A. Lim, Executive Director, MBC Arnold P. Salvador, Executive Director, MAP Marc P. Opulencia, Deputy Director, MBC Michael B. Mundo, Chief Economist, MBC Poland Economic Institute, National Bank of Poland Mateusz Pipien, General Director Piotr Boguszewski, Advisor Portugal PROFORUM, Associao para o Desenvolvimento da Engenharia Ildio Antnio de Ayala Serdio, Vice President of the Board of Directors Frum de Administradores de Empresas (FAE) Paulo Bandeira, General Director Pedro do Carmo Costa, Member of the Board of Directors Esmeralda Dourado, President of the Board of Directors Puerto Rico Puerto Rico 2000, Inc. Suzette M. Jimenez, President Francisco Montalvo Fiol, Project Coordinator Qatar Qatari Businessmen Association (QBA) Issa Abdul Salam Abu Issa, Secretary-General Sarah Abdallah, Deputy General Manager Romania Group of Applied Economics (GEA) Liviu Voinea, Executive Director Irina Zgreaban, Program Coordinator Russian Federation Bauman Innovation Alexei Prazdnitchnykh, Principal, Associate Professor Katerina Marandi, Consultant Stockholm School of Economics, Russia Igor Dukeov, Area Principal Carl F. Fey, Associate Dean of Research Rwanda Private Sector Federation Molly Rwigamba, Acting Chief Executive Officer Emmanuel Rutagengwa, Policy Analyst Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad, President Khaldon Mahasen, Vice President Senegal Centre de Recherches Economiques Appliques (CREA), University of Dakar Diop Ibrahima Thione, Director Serbia Center for Applied European Studies (CPES) Srdjan Djurovic, Director Dusko Vasiljevic, Senior Researcher

Singapore Economic Development Board Lim Hong Khiang, Director Planning 2 Chua Kia Chee, Head, Research and Statistics Unit Cheng Wai San, Head, Planning Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina, Executive Director Peter Klatik, Researcher Matej Tunega, Researcher Slovenia Institute for Economic Research Mateja Drnovek, Professor, Faculty of Economics Peter Stanovnik, Professor Sonja Uri , Senior Researcher Ales Vahc , Professor, Faculty of Economics ic South Africa Business Leadership South Africa Friede Dowie, Director Michael Spicer, Chief Executive Officer Business Unity South Africa Simi Siwisa, Director Jerry Vilakazi, Chief Executive Officer Spain IESE Business School, International Center for Competitiveness Antoni Subir, Professor Mara Luisa Blzquez, Research Associate Sri Lanka Institute of Policy Studies Ayodya Galappattige, Research Officer Saman Kelegama, Executive Director Manoj Thibbotuwawa, Research Officer Swaziland Federation of Swaziland Employers and Chamber of Commerce Zodwa Mabuza, Chief Executive Officer Sihle Fakude,Research Analyst Sweden Center for Strategy and Competitiveness, Stockholm School of Economics Christian Ketels, Senior Research Fellow rjan Slvell, Professor Switzerland University of St. Gallen, Executive School of Management, Technology and Law (ES-HSG) Beat Bechtold, Communications Manager Alexander Jungmeister, Vice Executive Director Rubn Rodriguez Startz, Project Manager Syria Ministry of Economy and Trade Amer Housni Louitfi, Minister of Economy and Trade State Planning Commission Tayseer Al-Ridawi, Head of State Planning Commission Syrian Enterprise Business Center (SEBC) Tamer Abadi, Director Taiwan, China Council for Economic Planning and Development, Executive Yuan Liu, Y. Christina, Minister Hung, J. B., Director, Economic Research Department Shieh, Chung Chung, Researcher, Economic Research Department Tajikistan The Center for Sociological Research Zerkalo Qahramon Baqoev, Director Gulnora Beknazarova, Researcher Alikul Isoev, Sociologist and Economist


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Partner Institutes

Tanzania Research on Poverty Alleviation (REPOA) Joseph Semboja, Professor and Executive Director Lucas Katera, Director, Commissioned Research Cornel Jahari, Researcher, Commissioned Research Department Thailand Sasin Graduate Institute of Business Administration, Chulalongkorn University Pongsak Hoontrakul, Senior Research Fellow Toemsakdi Krishnamra, Director of Sasin Piyachart Phiromswad, Faculty of Economics Thailand Development Research Institute (TDRI) Somchai Jitsuchon, Research Director Chalongphob Sussangkarn, Distinguished Fellow Yos Vajragupta, Senior Researcher Timor-Leste East Timor Development Agency (ETDA) Jose Barreto Goncalves, Survey Supervisor Palmira Pires, Director David Wilkes, Survey Field Officer Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo, Executive Director Harrylal Nirmala, Director, International Centre The Competitiveness Company Rolph Balgobin, Chairman Tunisia Institut Arabe des Chefs dEntreprises Majdi Hassen, Executive Counsellor Chekib Nouira, President

Vietnam Central Institute for Economic Management (CIEM) Dinh Van An, President Phan Thanh Ha, Deputy Director, Department of Macroeconomic Management Pham Hoang Ha, Senior Researcher, Department of Macroeconomic Management Institute for Development Studies in HCMC (HIDS) Nguyen Trong Hoa, Professor and President Du Phuoc Tan, Head of Department Trieu Thanh Son, Researcher Zambia Institute of Economic and Social Research (INESOR), University of Zambia Mutumba M. Bull, Director Patricia Funjika, Staff Development Fellow Jolly Kamwanga, Coordinator Zimbabwe Graduate School of Management, University of Zimbabwe A. M. Hawkins, Professor Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Nicaragua, Panama INCAE Business School, Latin American Center for Competitiveness and Sustainable Development (CLACDS) Arturo Condo, Rector Marlene de Estrella, Director of External Relations Lawrence Pratt, Director, CLACDS Vctor Umaa, Researcher and Project Manager, CLACDS Latvia, Lithuania Stockholm School of Economics in Riga Karlis Kreslins, Executive MBA Programme Director Anders Paalzow, Rector

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Turkey TUSIAD Sabanci University Competitiveness Forum Dilek Cetindamar, Director and Professor Funda Kalemci, Project Specialist Uganda Kabano Research and Development Centre Robert Apunyo, Program Manager Delius Asiimwe, Executive Director Catherine Ssekimpi, Research Associate Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist United Arab Emirates Dubai Economic Council Gayane Afrikian, Director, Dubai Competitiveness Centre Khawla Belqazi, Special Projects Manager Emirates Competitiveness Council Abdullah Nasser Lootah,Secretary General Institute for Social and Economic Research (ISER), Zayed University Nico Vellinga, Professor United Kingdom LSE Enterprise Ltd, London School of Economics and Political Science Niccolo Durazzi, Project Administrator Robyn Klingler Vidra, Researcher Jane Lac, Project Manager Uruguay Universidad ORT Isidoro Hodara, Professor Venezuela CONAPRIVenezuelan Council for Investment Promotion Eduardo Porcarelli, Executive Director Litsay Guerrero, Manager, Economic Affairs


PrefaceROBERT GREENHILL Chief Business Officer, World Economic Forum

After two years during which the Travel & Tourism (T&T) sector faced a myriad of obstacles, it is now emerging from the most difficult period in its recent history. The industry has faced not only the global economic crisis and volatile oil prices, but also climatic disturbances, multiple security incidents, pandemics, and strikes among industry personnel. Following all these shocks, the sector is now witnessing a gradual recovery, with emerging markets leading the way. Indeed, after a significant contraction in 2009, international tourist arrivals picked up again in 2010 and have returned to their pre-crisis peak level. The World Travel & Tourism Council (WTTC) estimates that, from direct and indirect activities combined, the T&T sector now accounts for a remarkable 9.2 percent of global GDP, 4.8 percent of world exports, and 9.2 percent of world investment. The T&T sector thus clearly remains a critical one for the world economy, accounting for a significant share of global employment and also providing an important opportunity for developing countries to move up the value chain toward the production of higher-valueadded services. In this context, an analysis of the T&T competitiveness of individual economies around the world remains pertinent. This is the objective of this fourth edition of The Travel & Tourism Competitiveness Report (TTCR). The World Economic Forum has for the past five years engaged key industry and thought leaders through its Aviation, Travel & Tourism Industry Partnership Programme to carry out an in-depth analysis of the T&T competitiveness of economies around the world. The aim is to provide a platform for multi-stakeholder dialogue to ensure the development of strong and sustainable national T&T industries capable of contributing effectively to international economic development. The theme of this edition of the TTCR, Beyond the Downturn, reflects the cautiously optimistic outlook and many complexities still facing the industry that must be overcome to ensure strong sectoral growth going into the future. At the core of this years Report is the fourth edition of the Travel & Tourism Competitiveness Index (TTCI). The aim of the TTCI, which covers a record 139 economies this year, is to provide a comprehensive strategic tool for measuring the factors and policies that make it attractive to develop the T&T sector in different countries. By providing detailed assessments of the T&T environments in countries worldwide, the

results can be used by all stakeholders to work together to improve the industrys competitiveness in their national economies, thereby contributing to national growth and prosperity. It also allows countries to track their progress over time in the various areas measured. The full Report is downloadable from www.weforum.org/ttcr and contains detailed profiles for each of the 139 economies featured in the study, as well as an extensive section of data tables with global rankings covering over 70 indicators included in the TTCI. In addition, it includes insightful contributions from a number of industry experts. These chapters explore issues such as the impact of the recent economic and financial crisis on the tourism industry, the opportunities for increasing the sector's competitiveness, and the important role to be played by Travel & Tourism in the emerging green economy. The Travel & Tourism Competitiveness Report 2011 could not have been put together without the distinguished thinkers who have shared with us their knowledge and experience. We are grateful to our Strategic Design Partner Booz & Company, and our Data Partners Deloitte, the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), and the World Travel & Tourism Council (WTTC) for helping us to design and develop the TTCI and for providing much of the industry-relevant data used in its calculation. We thank our Industry Partners in this ReportAirbus, Bombardier, Etihad Airways, Gulf Air, Hertz, Jet Airways, Jumeirah, RollsRoyce, Silversea, SWISS, and Visafor their support in this important venture. We also wish to thank the editors of the Report, Jennifer Blanke and Thea Chiesa, for their energy and their commitment to the project. Appreciation goes to the members of the competitiveness team: Ciara Browne, Roberto Crotti, Margareta Drzeniek Hanouz, Thierry Geiger, Satu Kauhanen, Irene Mia, and Pearl Samandari. Finally, we would like to convey our sincere gratitude to our network of 150 Partner Institutes worldwide, without whose hard work the annual administration of the Executive Opinion Survey and this Report would not be possible.


Preface

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Executive SummaryJENNIFER BLANKE THEA CHIESA World Economic Forum

The Travel & Tourism (T&T) industry is slowly recovering from the economic downturn, with the strong recovery in emerging economies compensating somewhat for the still weaker mature markets in Europe and North America. In this context, this fourth edition of The Travel & Tourism Competitiveness Report is being released at a time when the industry is looking for ways to develop new market segments and attract new customers. Indeed, Travel & Tourism remains a critical economic sector worldwide, with the potential to provide economic growth and development internationally. A growing national T&T sector contributes to employment, raises national income, and can improve the balance of payments. Thus the sector is an important driver of growth and prosperity, and, particularly within developing countries, it can also play a key role in poverty reduction. Although developing the T&T sector provides many benefits, numerous obstacles at the national level continue to hinder its development. In this context, five years ago the World Economic Forum, together with its Industry and Data Partners, embarked on a multi-year research effort aimed at exploring various issues related to the T&T competitiveness of countries around the world. This years Report is published under the theme Beyond the Downturn, which reflects the forwardlooking attitude of the sector as it aims to ensure strong growth going into the future.

The Travel & Tourism Competitiveness Index Although developing the T&T sector provides many benefits, numerous obstacles at the national level continue to hinder its development. The Travel & Tourism Competitiveness Index (TTCI) aims to measure the many different regulatory and businessrelated issues that have been identified as levers for improving T&T competitiveness in countries around the world. Through detailed analysis of each pillar and subpillar of the Index, businesses and governments can address their particular challenges to the sectors growth. The TTCI has been developed within the context of the World Economic Forums Industry Partnership Programme for the Aviation, Travel & Tourism sector. The Index was developed in close collaboration with our Strategic Design Partner Booz & Company and Data Partners Deloitte, the International Air Transport Association (IATA), the International Union for Conservation of Nature (IUCN), the World Tourism Organization (UNWTO), and the World Travel & Tourism Council (WTTC). We have also received important feedback from a number of key companies that are Industry Partners in the effort, namely Airbus, Bombardier, Etihad Airways, Gulf Air, Hertz, Jet Airways, Jumeirah, Rolls-Royce, Silversea, SWISS, and Visa.


Executive Summary

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Executive Summary

The TTCI aims to measure the factors and policies that make it attractive to develop the T&T sector in different countries. It is based on three broad categories of variables that facilitate or drive T&T competitiveness. These categories are summarized into the three subindexes of the Index: (1) the T&T regulatory framework subindex; (2) the T&T business environment and infrastructure subindex; and (3) the T&T human, cultural, and natural resources subindex. The first subindex captures those elements that are policy related and generally under the purview of the government; the second subindex captures elements of the business environment and the hard infrastructure of each economy; and the third subindex captures the softer human, cultural, and natural elements of each countrys resource endowments. Each of these three subindexes is composed in turn by a number of pillars of T&T competitiveness, of which there are 14 in all. These are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Policy rules and regulations Environmental sustainability Safety and security Health and hygiene Prioritization of Travel & Tourism Air transport infrastructure Ground transport infrastructure Tourism infrastructure ICT infrastructure Price competitiveness in the T&T industry Human resources Affinity for Travel & Tourism Natural resources Cultural resources

The table shows that Switzerland remains the top-ranked country, a place it has held since the first edition of the Report. Tables 26 show the rankings in a regional context, grouping countries into the following five regional groups: Europe, the Americas, Asia Pacific (including Central Asia), the Middle East and North Africa, and sub-Saharan Africa. We discuss here a selection of countries from each region to provide a sense of the results and how they are interpreted at the national level. More countries are discussed in detail in Chapter 1.1.Europe

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Each of the pillars is, in turn, made up of a number of individual variables. The dataset includes both Survey data from the World Economic Forums annual Executive Opinion Survey, and quantitative data from publicly available sources, international organizations, and T&T institutions and experts (for example, IATA, IUCN, the UNWTO, WTTC, UNCTAD, and UNESCO). The Survey is carried out among CEOs and top business leaders in all economies covered by our research; these are the people making the investment decisions in their respective economies. The Survey provides unique data on many qualitative institutional and business environment issues, as well as specific issues related to the T&T industry and the quality of the natural environment. The exact methodology underlying the construction of the TTCI is described in Chapter 1.1.

The Travel & Tourism Competitiveness Index rankings 2011 Table 1 shows the overall rankings for the 139 countries included in this years TTCI, comparing this years rankings with those from the 2009 edition of the Report.

Table 1 shows that many countries from Europe do very well in the rankings, with all of the top 5 places taken by European countries and 14 of the top 20 countries hailing from the region. Table 2 shows the rankings just for European countries, with the first column showing the rank within the region and the second column showing the overall rank out of all 139 economies included in the Index this year. As the table shows, Switzerland is ranked 1st. Germany, France, Austria, Sweden, the United Kingdom, and Spain follow as the other countries among the top 10 overall. Switzerland is a country rich in cultural and natural resources, including an impressive number of World Heritage cultural and natural sites for a country of its size. A large percentage of the countrys land area is protected and the natural environment is assessed as being among the most pristine in the world (ranked 5th). This natural heritage is buttressed by a strong national focus on environmental sustainability: Switzerland is ranked 2nd overall on this pillar, based on strong and wellenforced environmental legislation and with a particular focus on developing the T&T sector sustainably. Switzerland is not only an attractive leisure tourism destination but is also an important business travel hub, with many international fairs and exhibitions held in the country each year. Staffing of the industry is facilitated by the availability of qualified labor to work in Travel & Tourism (ranked 2nd), perhaps not surprising in a country with many of the best hotel management schools. Added to these strengths is Switzerlands excellent ground transport infrastructure (ranked 5th), with top-quality roads and railroads and an excellent domestic transport network. Also well assessed is the specific tourism infrastructure (ranked 8th), with readily available hotel rooms and automated teller machines (ATMs) for cash withdrawals. Such high-quality infrastructure makes a tourists stay in the country easy and comfortable, an experience that is reinforced by the high level of general safety and security (ranked 2nd, just behind Finland). Germany is ranked 2nd out of all countries in the TTCI, having moved up one place since the last assessment and overtaking Austria. The country is characterized by abundant cultural resources, ranked 6th worldwide for its 32 World Heritage cultural sites, 2nd


Table 1: Travel & Tourism Competitiveness Index 2011 and 2009 comparison2011Country/Economy Rank/139 Score

2009Rank/133 Country/Economy

2011Rank/139 Score

2009Rank/133

Switzerland Germany France Austria Sweden United States United Kingdom Spain Canada Singapore Iceland Hong Kong SAR Australia Netherlands Luxembourg Denmark Finland Portugal New Zealand Norway Ireland Japan Belgium Cyprus Estonia Malta Italy Barbados Greece United Arab Emirates Czech Republic Korea, Rep. Slovenia Croatia Malaysia Montenegro Taiwan, China Hungary China Bahrain Thailand Qatar Mexico Costa Rica Puerto Rico Israel Tunisia Bulgaria Poland Turkey Latvia Brazil Mauritius Slovak Republic Lithuania Panama Chile Uruguay Russian Federation Argentina Oman Saudi Arabia Romania Jordan Jamaica South Africa Brunei Darussalam India Peru

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

5.68 5.50 5.41 5.41 5.34 5.30 5.30 5.29 5.29 5.23 5.19 5.19 5.15 5.13 5.08 5.05 5.02 5.01 5.00 4.98 4.98 4.94 4.92 4.89 4.88 4.88 4.87 4.84 4.78 4.78 4.77 4.71 4.64 4.61 4.59 4.56 4.56 4.54 4.47 4.47 4.47 4.45 4.43 4.43 4.42 4.41 4.39 4.39 4.38 4.37 4.36 4.36 4.35 4.35 4.34 4.30 4.27 4.24 4.23 4.20 4.18 4.17 4.17 4.14 4.12 4.11 4.07 4.07 4.04

1 3 4 2 7 8 11 6 5 10 16 12 9 13 23 14 15 17 20 19 18 25 22 21 27 29 28 30 24 33 26 31 35 34 32 52 43 38 47 41 39 37 51 42 53 36 44 50 58 56 48 45 40 46 49 55 57 63 59 65 68 71 66 54 60 61 69 62 74 (Contd.)

Lebanon Albania Dominican Republic Georgia Indonesia Egypt Macedonia, FYR Colombia Morocco Trinidad and Tobago Vietnam Sri Lanka Serbia Azerbaijan Namibia Ukraine Guatemala Ecuador Honduras Cape Verde Armenia Botswana Gambia, The Kazakhstan Philippines Kuwait El Salvador Bosnia and Herzegovina Guyana Moldova Nicaragua Mongolia Rwanda Kenya Senegal Syria Venezuela Kyrgyz Republic Ghana Cambodia Tanzania Zambia Nepal Algeria Iran, Islamic Rep. Uganda Swaziland Bolivia Tajikistan Zimbabwe Benin Malawi Ethiopia Paraguay Libya Pakistan Cameroon Madagascar Mozambique Bangladesh Nigeria Cte dIvoire Burkina Faso Mali Timor-Leste Lesotho Mauritania Burundi Angola Chad

70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139

4.03 4.01 3.99 3.98 3.96 3.96 3.96 3.94 3.93 3.91 3.90 3.87 3.85 3.85 3.84 3.83 3.82 3.79 3.79 3.77 3.77 3.74 3.70 3.70 3.69 3.68 3.68 3.63 3.62 3.60 3.56 3.56 3.54 3.51 3.49 3.49 3.46 3.45 3.44 3.44 3.42 3.40 3.37 3.37 3.37 3.36 3.35 3.35 3.34 3.31 3.30 3.30 3.26 3.26 3.25 3.24 3.18 3.18 3.18 3.11 3.09 3.08 3.06 3.05 2.99 2.95 2.85 2.81 2.80 2.56

n/a 90 67 73 81 64 80 72 75 84 89 78 88 76 82 77 70 96 83 n/a 91 79 87 92 86 95 94 107 102 93 103 105 n/a 97 101 85 104 106 110 108 98 100 118 115 n/a 111 n/a 114 109 121 120 117 123 122 112 113 125 116 124 129 128 130 126 119 n/a 132 127 131 n/a 133


Executive Summary

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Executive Summary

Table 2: The Travel & Tourism Competitiveness Index 2011: EuropeSUBINDEXES OVERALL INDEX Country/Economy Regional rank Overall rank Score T&T regulatory framework Rank Score T&T business environment and infrastructure Rank Score T&T human, cultural, and natural resources Rank Score

Switzerland Germany France Austria Sweden United Kingdom Spain Iceland Netherlands Luxembourg Denmark Finland Portugal Norway Ireland Belgium Cyprus Estonia Malta Italy Greece Czech Republic Slovenia Croatia Montenegro Hungary Bulgaria Poland Turkey Latvia Slovak Republic Lithuania Russian Federation Romania Albania Georgia Macedonia, FYR Serbia Ukraine Armenia Bosnia and Herzegovina Moldova

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

1 2 3 4 5 7 8 11 14 15 16 17 18 20 21 23 24 25 26 27 29 31 33 34 36 38 48 49 50 51 54 55 59 63 71 73 76 82 85 90 97 99

5.68 5.50 5.41 5.41 5.34 5.30 5.29 5.19 5.13 5.08 5.05 5.02 5.01 4.98 4.98 4.92 4.89 4.88 4.88 4.87 4.78 4.77 4.64 4.61 4.56 4.54 4.39 4.38 4.37 4.36 4.35 4.34 4.23 4.17 4.01 3.98 3.96 3.85 3.83 3.77 3.63 3.60

1 12 7 3 11 21 22 2 16 14 15 5 19 8 10 18 23 17 9 45 34 26 29 42 32 24 54 49 66 38 39 33 73 51 53 35 56 67 64 58 92 68

5.99 5.67 5.71 5.89 5.67 5.35 5.34 5.90 5.50 5.51 5.51 5.74 5.47 5.71 5.68 5.48 5.33 5.50 5.69 5.00 5.11 5.26 5.19 5.02 5.15 5.29 4.79 4.86 4.58 5.07 5.05 5.14 4.49 4.85 4.79 5.11 4.78 4.57 4.63 4.75 4.24 4.57

1 2 8 12 15 11 10 6 18 7 16 30 24 26 23 35 14 19 22 27 29 37 33 36 49 45 44 65 55 39 57 46 53 66 91 94 78 84 76 100 97 98

5.58 5.57 5.35 5.19 5.15 5.27 5.32 5.36 5.10 5.35 5.11 4.75 4.84 4.79 4.88 4.66 5.15 5.09 4.93 4.79 4.75 4.56 4.70 4.58 4.15 4.28 4.32 3.81 4.02 4.36 3.96 4.21 4.07 3.80 3.30 3.21 3.49 3.39 3.53 3.09 3.14 3.11

2 5 9 10 8 3 6 41 16 38 26 25 17 32 37 20 44 50 54 15 29 31 53 43 36 48 51 30 28 83 52 85 45 66 61 92 93 94 118 107 103 129

5.48 5.26 5.18 5.13 5.21 5.28 5.22 4.31 4.78 4.37 4.53 4.55 4.73 4.45 4.37 4.64 4.19 4.06 4.02 4.83 4.48 4.48 4.03 4.23 4.38 4.06 4.05 4.48 4.50 3.66 4.04 3.66 4.15 3.84 3.93 3.62 3.62 3.60 3.33 3.47 3.49 3.12

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for the number of international fairs and exhibitions held in the country, and 3rd for its creative industries. The countrys infrastructure is among the best in the world, ranked 3rd for the quality of its ground transport infrastructure and 7th for its air transport infrastructure. In addition, Germany makes great efforts to develop the T&T industry in a sustainable way, with the worlds most stringent and best-enforced environmental regulations and strong support of international environmental efforts, as demonstrated through its ratification of many international environmental treaties. France moves up this year by one place to 3rd position, also overtaking Austria. France attracts

tourists with its rich cultural heritage (ranked 4th for the number of World Heritage cultural sites and 7th for creative industries). The country also hosts many international fairs and exhibitions (ranked 5th), thereby attracting business travelers as well. Frances ground transport infrastructure is among the best in the world (ranked 4th), with the quality of roads and railroads particularly well assessed, as well as its air transport infrastructure (ranked 6th). Ensuring that the sector is developed in a sustainable way is also a significant priority for the government, with France ranked 9th on this pillar. Austria drops by two positions this year, although the country is still ranked a high 4th out of all 139


economies. Its ranking is attributable to its rich cultural resources, with eight World Heritage cultural sites, rich creative industries, and many fairs and exhibitions catering to business travelers. The natural environment is also well assessed, along with the countrys focus on environmental sustainability (ranked 5th). In addition, Austrians are perceived as open and welcoming to foreign travelers. Austrias tourism infrastructure is assessed as second to none, with abundant car rental facilities, hotel accommodations, and ATMs. Other strengths include Austrias assessment as one of the safest countries in the world (ranked 10th) and its excellent health and hygiene levels (ranked 3rd). Sweden joins the top five countries for the first time, having improved by two places since the 2009 T&T Report. The country is ranked 1st out of all countries in three key areas that span the three subindexes of the TTCI: environmental sustainability, ICT infrastructure, and cultural resources. The countrys supportive policy environment (ranked 8th), excellent safety and security environment (7th), and excellent air transport infrastructure (10th) contribute to this strong result and help the country to overcome its lack of price competitiveness (ranked 120th). The United Kingdom moves up by an impressive four positions since the last edition of the Report to reach 7th place this year. The countrys T&T competitiveness is based on its excellent cultural resources (ranked 3rd), strong human resources (ranked 8th), and solid ICT and air transport infrastructures (ranked 9th and 5th, respectively). The country also benefits from a supportive policy environment as well as significant focus on environmental sustainability. Its rise in rank since the last assessment is driven largely by greater safety and security, a greater affinity for Travel & Tourism in the country, and more competitive prices, particularly hotel prices. Spain is ranked behind the United Kingdom within Europe, falling two places to 8th position. The country is ranked 2nd worldwide for the richness of its cultural resources, with many World Heritage sites, a large number of international fairs and exhibitions, and a significant sports stadium capacity. Spains tourism infrastructure is ranked 8th internationally, with many hotel rooms, car rental facilities, and ATMs, and its air transport infrastructure also gets good marks (ranked 8th). The government prioritizes the sector significantly, taking great care to collect comprehensive and timely data on the T&T sector, and the country makes strong efforts to attract tourists through solid destinationmarketing campaigns and by ensuring Spains presence at many international tourism fairs. Spains decline in rank is driven in large part by increased concerns about the availability of qualified labor and a comparative weakening of some aspects of the policy environment. Italy moves up by one position to 27th overall, and is ranked 20th in Europe. As well as its cultural richness, with many World Heritage Sites, international

fairs and exhibitions, and rich creative industries, Italys strengths lie in areas such as the health and hygiene of the country (27th), its air transport infrastructure (30th), and especially its excellent tourism infrastructure (ranked 1st). However, it faces a number of challenges that bring its overall rating down. These include policy rules and regulations, where Italy ranks 84th (consistently getting worse over the past few years) because of its lack of foreign ownership (ranked 112th) and its lack of transparency in government policymaking (119th). In addition, ground transport infrastructure requires upgrading, there is insufficient focus on developing the sector in an environmentally sustainable way, and the country continues to suffer from a lack of price competitiveness. Greece is ranked 21st in Europe and 29th overall, down by five positions since the last assessment. The country benefits from rich cultural resources (ranked 25th), excellent health and hygiene (ranked 20th overall), and a top-notch tourism infrastructure (5th). Further, there is a strong national affinity for tourism compared with many other European countries, including a generally open and positive attitude toward tourists (26th). The decline in rank can be traced to factors such as a weaker policy environment and increased concerns about safety and security, as well as a lower prioritization of Travel & Tourism within the country (perhaps not surprising given the countrys recent more general economic travails).The Americas

Table 3 shows the regional rankings for the countries in the Americas. As this table shows, the United States is the highest-ranked country in the Americas and 6th out of all countries, up two positions from the last assessment and with a somewhat stable performance since the TTCI was conceived. The country places 3rd for its overall business environment and infrastructure and 1st for its human, cultural, and natural resources. In particular, the United States has an excellent air transport infrastructure (ranked 2nd) and high-quality tourism infrastructure. Its cultural resources are ranked 6th and its natural resources are ranked 3rd out of all countries, with many nationally protected areas and many World Heritage natural sites, although a perception exists that the environment is not being sufficiently protected (ranked 105th for environmental sustainability). Canada falls four places this year to 9th overall and 2nd in the region. Canadas natural resources constitute a key strength, with the countrys nine World Heritage natural sites placing it 4th internationally. Its cultural resources are also a strong point, with many international fairs and exhibitions in the country and strong creative industries in particular. Canadas air transport infrastructure is ranked 1st out of all countries, and it also gets good marks for its tourism and ICT infrastructure, facilitating the online T&T environment. Canadas policy environment is very conducive to the development of the sector (ranked 4th, up one place since the 2009 T&T Report).


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Executive Summary

Table 3: The Travel & Tourism Competitiveness Index 2011: The AmericasSUBINDEXES OVERALL INDEX Country/Economy Regional rank Overall rank Score T&T regulatory framework Rank Score T&T business environment and infrastructure Rank Score T&T human, cultural, and natural resources Rank Score

United States Canada Barbados Mexico Costa Rica Puerto Rico Brazil Panama Chile Uruguay Argentina Jamaica Peru Dominican Republic Colombia Trinidad and Tobago Guatemala Ecuador Honduras El Salvador Guyana Nicaragua Venezuela Bolivia Paraguay

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

6 9 28 43 44 45 52 56 57 58 60 65 69 72 77 79 86 87 88 96 98 100 106 117 123

5.30 5.29 4.84 4.43 4.43 4.42 4.36 4.30 4.27 4.24 4.20 4.12 4.04 3.99 3.94 3.91 3.82 3.79 3.79 3.68 3.62 3.56 3.46 3.35 3.26

44 25 20 74 47 40 80 52 48 30 72 55 87 63 102 100 103 93 90 84 91 105 120 133 107

5.01 5.28 5.45 4.48 4.92 5.05 4.40 4.84 4.91 5.19 4.51 4.79 4.30 4.66 4.17 4.18 4.08 4.24 4.27 4.35 4.25 3.99 3.67 3.36 3.95

3 5 21 61 58 38 75 52 56 71 70 59 82 69 92 51 81 93 80 79 99 104 96 111 122

5.42 5.38 4.99 3.91 3.95 4.55 3.55 4.08 3.99 3.62 3.66 3.93 3.40 3.66 3.30 4.13 3.40 3.26 3.41 3.49 3.10 3.03 3.15 2.87 2.72

1 7 47 13 33 88 11 57 62 60 35 87 34 89 39 111 58 64 77 124 102 84 99 67 130

5.48 5.21 4.07 4.90 4.43 3.65 5.13 3.97 3.89 3.93 4.41 3.65 4.42 3.65 4.36 3.42 3.96 3.87 3.68 3.19 3.50 3.66 3.55 3.82 3.11

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Note: Suriname is not covered this year.

Barbados is ranked 3rd in the region, at 28th overall, up two places since the last assessment. Barbados is ranked 2nd overall for the countrys affinity for Travel & Tourism, with a positive attitude toward tourists and toward the value of tourism in the country. The country is prioritizing the sector to a very high degree (ranked 3rd), spending a high percentage of GDP on the sector, ensuring effective destination-marketing campaigns, and collecting relevant sector data on a timely basis. Increased efforts toward environmental sustainability would further reinforce the countrys strong T&T competitiveness. Mexico has improved by eight places and is now ranked 4th in the region and 43rd overall, overtaking Costa Rica and Brazil since the last assessment. Mexico gets impressive marks for its natural resources (ranked 10th), an area that shows an improvement since the last assessment, with many World Heritage natural sites and rich fauna. The countrys cultural resources are also among the best in the world (19th), with 33 World Heritage cultural sites, several international fairs and exhibitions, and strong creative industries. These inherent strengths are reinforced by the overall prioritization of the sector in the country (30th), with effective marketing and branding campaigns for attracting tourists and significant efforts to collect T&T sector data in a comprehensive and timely manner. Some areas requiring attention are the ground transport infrastructure (79th),

insufficient heath and hygiene (ranked 64th), and safety and security concerns, ranked 128th. Costa Rica is ranked 5th in the region and 44th overall. The country gets excellent marks for its natural resources (ranked 6th), with several World Heritage sites, a high percentage of nationally protected areas, and its very diverse fauna. Given the importance of the natural environment for the countrys tourism industry, it is notable that it ranks a high 25th overall for environmental sustainability, an area where it has continued to improve over the past few years. However, health and hygiene remains a concern (74th). Further, although its tourism infrastructure is relatively well developed (39th), with a strong presence of major car rental companies and abundant hotel rooms, ground transport infrastructure requires significant upgrading (93rd), particularly roads and ports, making travel in the country somewhat difficult. Brazil is ranked 7th in the Americas and 52nd overall, declining by seven places since the last assessment but with a stable score. The country is ranked 1st out of all countries for its natural resources and 23rd for its cultural resources, with many World Heritage sites, a great proportion of protected land area, and the richest fauna in the world. This is buttressed by a focus on environmental sustainability (ranked 29th), an area that has been improving over recent years. Safety and security has also improved impressively since the last assessment.


Table 4: The Travel & Tourism Competitiveness Index 2011: Asia PacificSUBINDEXES OVERALL INDEX Country/Economy Regional rank Overall rank Score T&T regulatory framework Rank Score T&T business environment and infrastructure Rank Score T&T human, cultural, and natural resources Rank Score

Singapore Hong Kong SAR Australia New Zealand Japan Korea, Rep. Malaysia Taiwan, China China Thailand Brunei India Indonesia Vietnam Sri Lanka Azerbaijan Kazakhstan Philippines Mongolia Kyrgyz Republic Cambodia Nepal Tajikistan Pakistan Bangladesh Timor-Leste

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

10 12 13 19 22 32 35 37 39 41 67 68 74 80 81 83 93 94 101 107 109 112 118 125 129 134

5.23 5.19 5.15 5.00 4.94 4.71 4.59 4.56 4.47 4.47 4.07 4.07 3.96 3.90 3.87 3.85 3.70 3.69 3.56 3.45 3.44 3.37 3.34 3.24 3.11 2.99

6 4 36 13 27 50 60 46 71 77 96 114 94 89 79 59 65 98 97 95 110 106 88 129 130 123

5.72 5.80 5.08 5.60 5.24 4.86 4.71 4.95 4.52 4.45 4.20 3.84 4.21 4.28 4.41 4.72 4.59 4.18 4.20 4.21 3.92 3.97 4.28 3.45 3.45 3.64

4 13 17 25 32 28 40 31 64 43 50 68 86 89 83 87 88 95 112 132 118 128 130 102 113 138

5.39 5.19 5.11 4.80 4.72 4.76 4.35 4.73 3.84 4.32 4.14 3.71 3.33 3.31 3.40 3.33 3.32 3.18 2.82 2.59 2.73 2.62 2.60 3.06 2.82 2.42

23 24 4 22 14 27 18 55 12 21 63 19 40 46 68 105 123 75 86 100 81 101 128 122 131 134

4.59 4.59 5.28 4.60 4.86 4.53 4.72 4.00 5.06 4.64 3.87 4.65 4.35 4.12 3.81 3.49 3.19 3.69 3.65 3.54 3.67 3.52 3.13 3.21 3.05 2.90

On the other hand, the ground transport network remains underdeveloped (116th), with the quality of roads, ports, and railroads requiring improvements. The country also continues to suffer from a lack of price competitiveness (114th), attributable in part to high ticket taxes and airport charges in the country, as well as high prices and high taxation more generally. Further, the overall policy environment is not particularly conducive to the development of the sector (ranked 114th), with discouraging rules on FDI, much time required for starting a business, and somewhat restrictive commitments to opening up tourism services under GATS commitments. Chile is ranked 9th in the region and 57th overall, maintaining a very stable performance since the last assessment. It has notable cultural resources, with six World Heritage cultural sites and several international fairs and exhibitions held in the country. In addition, policy rules and regulations are conducive to the development of the T&T sector (12th), with few foreign ownership restrictions, a liberal visa regime, and open bilateral Air Service Agreements, although the time and cost for starting new businesses remains relatively high. The country also benefits from good safety and security by regional standards (27th). However, Chiles T&T competitiveness would be strengthened by upgrading

both its transport and tourism infrastructures and by a greater focus on developing the industry in a more environmentally sustainable way.Asia Pacific

Table 4 displays the regional rankings and data for the Asia Pacific region. As the table shows, Singapore is the top-ranked country in the region at 10th position, the same position it held in the last edition of the Report. Singapore benefits from excellent transport infrastructure, with ground transport infrastructure and air transport infrastructure ranked 2nd and 14th, respectively. Singapore is ranked 2nd for the quality of its human resources available to work in the country. And with the countrys famously well-functioning public institutions, it is perhaps not surprising that it ranks 1st out of all countries for its policy environment, with rules and regulations that are extremely conducive to the development of its T&T industries (policies facilitating foreign ownership and FDI, well-protected property rights, and few visa restrictions). Further, Singapore is among the safest countries of all assessed and is ranked 2nd for the overall prioritization of Travel & Tourism in the country. Price competitiveness also remains an area of strength compared with many other countries at the same advanced stage of development.


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Executive Summary

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Singapore is followed in the regional ranking by Hong Kong SAR at 12th overall, the same place it held in the last edition. Hong Kongs transport is even better assessed than Singapores, with ground transport and air transport infrastructures ranked 1st and 12th, respectively. Hong Kong gets relatively good marks for cultural resources, with many international fairs and exhibitions held in the country and strong creative industries. Hong Kongs policy environment is rated second only to Singapores, and the tourism sector is a clear priority (ranked 12th). Like Singapore, Hong Kong is safe from crime and violence (ranked 5th), and the country is unsurpassed for the quality of health and hygiene, where it ranks 1st. Australia continues to decline in the rankings by four more places, and is now at 13th position overall. Australias T&T competitiveness continues to be characterized by a number of clear strengths, including its rich natural resources: the country ranks 1st for its World Heritage natural sites, benefiting from diverse fauna and a pristine natural environment. Given the importance of the environment for much of its leisure tourism, it is notable that the stringency and enforcement of its environmental regulations are well assessed. And given the countrys distance from other continents and the related importance of domestic air travel to overcome the large distances between major sites, its competitiveness is also buttressed by excellent air transport infrastructure (ranked 3rd) as well as good general tourism infrastructure (ranked 16th). The drop in rank since the last edition can be traced in large part to a perceived weakening of the focus on environmental sustainability and increased concerns about the availability of qualified labor in the country. New Zealand is ranked 4th in the region and 19th overall, up one position since the last edition. The country benefits from its rich natural resources, with a number of World Heritage natural sites (ranked 17th) and a pristine natural environment (ranked 3rd), protected by strong and well-enforced environmental legislation. The overall policy rules and regulations in the country are conducive to the development of the sector (ranked 3rd), with very transparent policymaking and among the least time and lowest cost required to start a business internationally. Although the countrys ground transport network remains somewhat underdeveloped, its air transport infrastructure gets excellent marks (ranked 11th), and both the tourism and ICT infrastructures are quite good by international standards. New Zealand also benefits from high-quality human resources (ranked 14th) and a very safe and secure environment overall (14th). Japan is ranked 5th regionally and 22nd out of all countries in the TTCI, up three places since the last assessment. Japan benefits from its cultural resources (ranked 12th), attributable to its 29 World Heritage cultural sites, the many international fairs and

exhibitions held in the country, and its rich creative industries. Its ground transport infrastructure is among the best in the world (ranked 6th), especially railroads, and Japan continues to be a leader in the area of education and training (ranked 12th). However, Japan ranks third from the bottom for the affinity of the country for Travel & Tourism (131st), and it struggles with prices that are not competitive by international standards (ranked 137th). Malaysia is ranked 7th regionally and 35th overall, down three positions since the 2009 T&T Report. Malaysia benefits from its rich natural resources (ranked 22nd) and its cultural resources (ranked 33rd). The country also benefits from excellent price competitiveness (ranked 3rd), with low comparative hotel and fuel prices, low ticket taxes and airport charges, very competitive hotel prices, and a favorable tax regime. Malaysias policy environment is assessed as conducive to the development of the sector (ranked 21st), and the country is characterized by a strong affinity for Travel & Tourism more generally (ranked 17th). With regard to weaknesses, health and hygiene indicators lag behind those of many other countries in the region, with, in particular, a low physician density (placing the country 96th). China, ranked 9th regionally, has continued its ascent in the rankings, moving up an additional eight places to 39th overall this year. China has been building on a number of clear strengths: it is ranked 5th for its natural resources, with many World Heritage natural sites and fauna that are among the richest in the world. It is ranked 16th for its cultural resources, with several World Heritage cultural sites, many international fairs and exhibitions held in the country, and creative industries that are unsurpassed. Moreover, the country is ranked 24th in price competitiveness. In addition, China has a relatively good air transport infrastructure (ranked 35th). However, there are some weaknesses pulling the countrys ranking down. China has a policy environment that is not conducive for T&T development (ranked 80th), although this is an area that has improved somewhat since the last assessment. Furthermore, policies related to environmental sustainability, while also improving, require further attention (95th). There are also some concerns related to health and hygiene (96th). Ground transport infrastructure gets middling marks (59th), and the countrys tourism infrastructure remains underdeveloped (ranked 95th), with few hotel rooms available and few ATMs. Thailand is ranked 10th in the region and 41st overall, down two places since the last edition. It is endowed with rich natural resources and a strong affinity for Travel & Tourism (ranked 21st and 24th, respectively), with a very friendly attitude of the population toward tourists (ranked 8th). This is buttressed by the governments strong prioritization of the sector (ranked 16th), with good destination-marketing campaigns and price competitiveness. However, some weaknesses remain: despite the prioritization of the sector by the


Table 5: The Travel & Tourism Competitiveness Index 2011: The Middle East and North AfricaSUBINDEXES OVERALL INDEX Country/Economy Regional rank Overall rank Score T&T regulatory framework Rank Score T&T business environment and infrastructure Rank Score T&T human, cultural, and natural resources Rank Score

United Arab Emirates Bahrain Qatar Israel Tunisia Oman Saudi Arabia Jordan Lebanon Egypt Morocco Kuwait Syria Algeria Iran, Islamic Rep. Libya

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

30 40 42 46 47 61 62 64 70 75 78 95 105 113 114 124

4.78 4.47 4.45 4.41 4.39 4.18 4.17 4.14 4.03 3.96 3.93 3.68 3.49 3.37 3.37 3.25

57 62 43 41 31 61 81 37 78 70 69 108 101 112 131 122

4.77 4.66 5.02 5.04 5.17 4.67 4.38 5.08 4.42 4.53 4.55 3.94 4.17 3.87 3.43 3.64

9 20 34 42 54 47 41 72 63 74 77 60 109 110 103 107

5.32 5.06 4.68 4.33 4.05 4.18 4.35 3.61 3.86 3.59 3.50 3.92 2.91 2.89 3.03 2.92

42 78 90 65 59 76 70 74 69 71 73 126 113 116 91 125

4.24 3.68 3.64 3.87 3.94 3.69 3.77 3.73 3.80 3.77 3.74 3.18 3.39 3.35 3.64 3.18

government, some aspects of the regulatory environmentsuch as stringent foreign ownership restrictions, visa restrictions for many travelers, and the long time required for starting a business in the countryare not particularly conducive to developing the sector (ranked 76th). In addition, given the importance of the natural environment for the countrys tourism, environmental sustainability should be a greater priority (ranked 97th). India is ranked 12th in the region and 68th overall, down six places since the last edition. As with China, India is well assessed for its natural resources (ranked 8th) and cultural resources (24th), with many World Heritage sites, both natural and cultural, rich fauna, many fairs and exhibitions, and strong creative industries. India also has quite good air transport (ranked 39th), particularly given the countrys stage of development, and reasonable ground transport infrastructure (ranked 43rd). However, some aspects of its tourism infrastructure remain somewhat underdeveloped (ranked 89th), with very few hotel rooms per capita by international comparison and low ATM penetration. Another area of concern is the policy environment, which has weakened measurably since the last assessment and is now ranked 128th, with much time and cost for starting a business, bilateral Air Service Agreements that are not assessed as open, and visas required for most visitors. Other areas requiring attention are health and hygiene standards (112th) and the countrys human resources base (96th). Indonesia is ranked 13th in the regional ranking and 74th overall, up seven places since the last edition. In terms of strengths, Indonesia places 17th for its natural resources, with several World Heritage natural sites and the richness of its fauna as measured by the known species in the country. Indonesia also has rich cultural

resources (ranked 39th), with eight World Heritage cultural sites, a number of international fairs and exhibitions held in the country, and strong creative industries. Further, the country is ranked 4th overall on price competitiveness in the T&T industry because of its competitive hotel prices (ranked 6th), low ticket taxes and airport charges, and favorable fuel prices. In addition, it is ranked 15th for its national prioritization of Travel & Tourism. However, these strengths are held back by underdeveloped infrastructure in the country, including to a certain extent air transport (58th) and especially ground transport (82nd), tourism infrastructure (116th), and ICT infrastructure (96th), representing significant investment opportunities in the country. There are also some concerns related to safety and security, particularly a lack of trust of police services and the business costs of potential terrorism. In addition, the country is not ensuring the sustainable development of the tourism sector (ranked 127th), an area of particular concern given the sectors dependence on the quality of the natural environment.The Middle East and North Africa

Table 5 shows the regional rankings for the Middle East and North Africa region. Note that these rankings were established prior to the political unrest experienced in North Africa in early 2011. As the table shows, the United Arab Emirates (UAE) continues to lead the region at 30th overall, up three places since the last assessment. While the UAE is not endowed with rich natural resources (116th), it sees a significant improvement in the assessment of its cultural resources (34th, up from 84th). In addition, the country is characterized by a strong affinity for Travel & Tourism (25th). The UAEs infrastructure also gets good marks, particularly its air


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transport infrastructure, which is ranked a very high 4th out of all countries assessed. The government is seen as prioritizing the sector strongly (ranked 8th) and carrying out very effective destination-marketing campaigns (ranked 1st). An area of clear improvement over recent years is in the rules and regulations, which have been adjusted to better support the sectors development, with the UAE moving up from 81st place in the 2009 Report to 38th place this year. Bahrain is ranked 2nd in the region and 40th overall, up one place since the last assessment. The country benefits from good transport infrastructure, particularly ground transport infrastructure (ranked 11th), and from a well-developed tourism infrastructure (ranked 26th). Bahrain also has high-quality human resources to call on in the country (29th), along with high levels of safety and security. On the other hand, policy rules and regulations could be more supportive of the sectors development (ranked 58th), and environmental sustainability remains a particular area of concern (123rd). Qatar is ranked 3rd in the region and 42nd overall, down five places since the 2009 T&T Report. Qatar benefits from a safe and secure environment (ranked 28th), high-quality human resources in the country (ranked 18th), good tourism infrastructure (34th), and excellent air transport infrastructure (21st), in line with its increasing role as an air transportation hub. In order to further improve the countrys T&T competitiveness, the country should continue to improve its policy environment and also to focus on environmental sustainability (67th). Israel is ranked 4th in the region, dropping 10 places to 46th overall. Israel benefits from its cultural attributes, including a number of World Heritage cultural sites. The countrys human resources base is also well evaluated (31st), providing healthy and well-trained people to work in the T&T sector. Further, its ICT infrastructure is quite well developed compared with those of other countries in the region. But although Israel gets excellent marks related to health and hygiene (ranked 16th), some aspects of safety and security continue to be a concern, primarily related to concerns about terrorism (ranked 105th). The decline in rank since the last assessment is in large part attributable to a weakening in the policy environment, and a sense that the sector is no longer being prioritized as strongly as in the past.Sub-Saharan Africa

Table 7 shows the rankings for sub-Saharan Africa. Mauritius remains the highest-ranked country in this region at 53rd overall, despite dropping 13 places in the rankings since the last assessment. Mauritius is ranked 1st out of all countries for the overall prioritization of the sector, with high government spending on the tourism industry (ranked 3rd), ensuring excellent destination-marketing campaigns to attract tourists

(ranked 8th), and collecting tourism data in a timely fashion. Mauritius is ranked 4th for the countrys overall affinity for Travel & Tourism, with the sector representing an important part of the economy and the general attitude of the population to foreign travelers being extremely welcoming. The countrys tourism infrastructure is well developed by regional standards (47th), and its policy environment is supportive of the development of the sector (ranked 27th). Mauritius also benefits from price competitiveness (ranked 18th), with relatively low prices overall and taxation that is not overly burdensome, although this would be improved through lower ticket taxes and airport charges, and more competitive hotel prices. Safety and security levels are also good by regional standards (ranked 45th). In terms of challenges, although the government is seen to be making an effort to develop the industry in a sustainable way (ranked 10th), this effort could be backed up by more stringent and well-enforced environmental regulations (ranked 60th and 55th, respectively). The drop in rank is attributable to declines across most areas measured by the Index, and particularly those measuring the quality of infrastructure, including transport, tourism, and ICT infrastructures. South Africa is ranked 2nd in the region and 66th overall, joining Mauritius as one of the only two sub-Saharan African countries in the top half of the overall rankings. South Africa comes in at a high 14th for its natural resources and 55th for its cultural resources, based on its many World Heritage sites, its rich fauna, its creative industries, and the many international fairs and exhibitions held in the country. The 2010 FIFA World Cup has reinforced South Africas position as a key international tourist destination. South Africa also benefits from price competitiveness (37th), with reasonably priced hotel rooms and a favorable tax regime. Infrastructure in South Africa is also well developed for the region, with air transport infrastructure ranked 43rd and a particularly good assessment of railroad quality (47th) and road quality (43rd). Overall, policy rules and regulations are conducive to the sectors development (ranked 31st); this is an area where the country has improved since the last assessment, with well-protected property rights and few visa requirements for visitors. Indeed, in 2010 the government selected tourism as one of the five priority sectors in its growth plan and has been reviewing tourism legislation in an effort to streamline it further. However, there are also some areas of weakness that have brought down the countrys overall ranking. Safety and security remains of serious concern (ranked 129th), as is the level of health and hygiene, where South Africa is ranked 88th as a result of its low physician density and concerns about access to improved sanitation in particular. Related to this, health indicators are extremely worrisome. South Africas life expectancy is low (albeit improving), at 53 years, placing the country 124th overall, a ranking


Table 6: Travel & Tourism Competitiveness Index 2011: Sub-Saharan AfricaSUBINDEXES OVERALL INDEX Country/Economy Regional rank Overall rank Score T&T regulatory framework Rank Score T&T business environment and infrastructure Rank Score T&T human, cultural, and natural resources Rank Score

Mauritius South Africa Namibia Cape Verde Botswana Gambia, The Rwanda Kenya Senegal Ghana Tanzania Zambia Uganda Swaziland Zimbabwe Benin Malawi Ethiopia Cameroon Madagascar Mozambique Nigeria Cte dIvoire Burkina Faso Mali Lesotho Mauritania Burundi Angola Chad

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

53 66 84 89 91 92 102 103 104 108 110 111 115 116 119 120 121 122 126 127 128 130 131 132 133 135 136 137 138 139

4.35 4.11 3.84 3.77 3.74 3.70 3.54 3.51 3.49 3.44 3.42 3.40 3.36 3.35 3.31 3.30 3.30 3.26 3.18 3.18 3.18 3.09 3.08 3.06 3.05 2.95 2.85 2.81 2.80 2.56

28 82 83 85 86 76 75 113 111 115 121 104 116 99 118 119 109 132 127 126 124 134 135 117 128 125 136 137 138 139

5.24 4.37 4.37 4.33 4.32 4.46 4.46 3.87 3.90 3.82 3.67 4.02 3.75 4.18 3.71 3.68 3.93 3.42 3.49 3.49 3.64 3.22 3.22 3.71 3.47 3.54 3.16 3.08 3.07 2.88

48 62 67 73 85 90 120 106 108 105 127 131 125 101 126 117 133 114 129 116 119 115 124 135 137 123 136 134 121 139

4.15 3.88 3.71 3.61 3.34 3.31 2.73 2.93 2.92 3.01 2.62 2.60 2.65 3.07 2.64 2.75 2.54 2.81 2.61 2.76 2.73 2.76 2.67 2.50 2.42 2.70 2.44 2.52 2.72 2.09

79 49 109 114 98 117 110 72 82 104 56 95 80 136 96 106 112 97 108 120 127 119 115 132 121 138 133 135 139 137

3.67 4.06 3.45 3.39 3.56 3.35 3.43 3.75 3.67 3.49 3.97 3.58 3.67 2.81 3.57 3.47 3.42 3.56 3.45 3.29 3.15 3.30 3.36 2.99 3.26 2.63 2.95 2.82 2.61 2.70

related in large part to the very high rates of communicable diseases such as HIV/AIDS. Improving the health of the workforce is of urgent concern for the future of the T&T sector, as well as for all other sectors in the economy. Namibia follows South Africa in the regional rankings, placing 84th overall. The country benefits from its rich natural resources, with rich fauna and a pristine natural environment. Indeed, environmental sustainability is prioritized in the country (ranked 22nd), which is critical given the importance of the quality of the environment for Namibias tourism. In addition, ground transport infrastructure is well developed by regional standards (44th). In order to further develop the sector, a more conducive policy environment will be important. For example, despite efforts in recent years, it remains costly and time consuming to start a business in the country. Health and hygiene is also not up to international standards (106th): the country has few doctors and insufficient access to improved sanitation and drinking water. More generally, improving the countrys human resources base through better education and training and more conducive labor laws will be critical.

Botswana is ranked 5th in the region at 91st overall, down 12 places after a significant improvement in the last edition of the Index. The country, known for its beautiful natural parks, is ranked 33rd out of all countries for its natural resources, with much nationally protected land area (ranked 6th), rich fauna, and a lack of environmental damage. The country also benefits from excellent price competitiveness, where it is ranked 8th because of low ticket taxes and airport charges, a favorable tax regime, and low prices more generally. In addition, some aspects of the policy environment are supportive of the sectors development, including wellprotected property rights and few visa restrictions. However, Botswana does face some challenges that lead to its rather low ranking overall. The countrys bilateral Air Service Agreements are not evaluated as open (105th), and, despite improvements, much time is still required for starting a new business (61 days, placing the country 126th). Further, Botswanas transport infrastructure is somewhat underdeveloped, as is its tourism infrastructure, with a low hotel room concentration, a limited presence of international car rental companies, and relatively few ATMs. There are also some concerns in


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the area of health and hygiene (100th), attributable to a low physician density, limited hospital beds, and insufficient access to improved sanitation. Associated with this, the greatest comparative weakness relates to the health of the workforce, although it must be noted that the countrys average life expectancy of 62 years represents a significant improvement over the situation in recent years. Kenya, a country long famous for its tourism attributes, is ranked 8th regionally and 103rd overall. Kenya is ranked 28th for its natural resources, with its two World Heritage natural sites and its rich diversity of fauna. Tourism is a recognized priority within the country (ranked 18th on this pillar), with high government spending on the sector and effective destinationmarketing campaigns. In addition, there is a strong focus on environmental sustainability in the country (ranked 26th), which is particularly important for Kenya given the sectors dependence on the natural environment. On the downside, the policy environment is not at present sufficiently conducive to the development of the sector (ranked 103rd), with bilateral Air Service Agreements that are not open, insufficiently protected property rights, and much time and cost required for starting a business. In addition, infrastructure remains underdeveloped and health and hygiene levels require improvement. Finally, the security situation in the country remains a significant hindrance to further developing the sector (ranked 139th).

Exploring issues of T&T competitiveness The Report also features excellent contributions from T&T industry experts, complementing the TTCI analysis described above. Many of the chapters focus on particular challenges facing the industry, providing suggestions on how to overcome them. In their chapter Crisis Aftermath: Pathways to a More Resilient Travel & Tourism Sector, Jrgen Ringbeck and Timm Pietsch of Booz & Company analyze structural trends in the global T&T sector and assess how the economic crisis of 200809 accelerated these trends, which have led to the sharpest decline in international tourist arrivals in history. The authors highlight the interplay between longterm trends such as the high growth dynamics of emerging tourism regions, maturing travel spending in the western hemisphere, and new opportunities for domestic/regional tourism as well as short-term volatility as a consequence of disruptive events. Collectively these all constitute new challenges but also opportunities in Travel & Tourism for national governments. The authors review which countries have felt the pain from the current downturn and which have managed to grow through the crisis, and they outline reasons and change factors driving these different experiences.

the travel & tourism competitiveness report 2011/2013

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